MARKETPLACE LENDING
Smart Lenders AM began its activities with a focus on the selection and management of consumer credit portfolios acquired via online lending platforms, or marketplace lending, in the United States and then in Europe.
Marketplace lending is a concept that originated in the United States, with the disintermediation of banking and the technological evolution of connecting borrowers and investors via online lending platforms. It represents an innovative (and often more accessible) alternative to traditional lending. It is an innovative way to gain exposure to asset classes such as consumer credit and small business loans.
For investors seeking to diversify their portfolio exposure beyond traditional assets, marketplace loans can offer attractive, absolute, and risk-adjusted return characteristics with a low duration.
This asset class exhibited fundamental resilience through an adverse economic environment, such as the COVID 19 crisis partly thanks to its low correlation to other asset classes.
Smart Lenders AM have recognized expertise in credit selection, acquisition and portfolio management. We have developed our own proprietary credit risk analysis model based on our research in Artificial Intelligence and Machine Learning. We use a quantitative and algorithmic approach in our loan selection process and the construction of our credit portfolios.
